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The Conversation 2026-11-09
Paraguay's Bank Collapse Leads to Presidential Resignation, Disproving 'Dubai of South America' Myth On November 3, 2026, millions of Paraguayans were unable to access their funds through the Ueno banking app, marking the start of a banking crisis that led to the ousting of President Santiago Pena. Following the crisis, Pena was placed under house arrest and charged with corruption-related crimes. The situation has revealed significant contradictions in Paraguay's economic development, particularly regarding the close ties between Ueno and political elites. This collapse raises critical questions about the benefits and risks of financial modernization in a nation that has portrayed itself as a model of economic stability.
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